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Impact of entrepreneurial characteristics on credit accessibility: case study of small businesses in West Sumatera – Indonesia

Author

Listed:
  • Teti Chandrayanti

    (Ekasakti University, Indonesia)

  • Teti Chandrayanti

    (Padjadjaran University, Indonesia)

  • Sulaeman Rahman Nidar

    (Padjadjaran University, Indonesia)

  • Asep Mulyana

    (Padjadjaran University, Indonesia)

  • Mokhamad Anwar

    (Padjadjaran University, Indonesia)

Abstract

Currently, the studies on entrepreneurial characteristics do not distinguish the business scales, while different scales of businesses, i.e. small, medium to large scales have their own characteristics. The purpose of this research was to determine whether business performance mediates the impact of entrepreneurial characteristics on accessing credit at small-scale business. In this study, a total of 221 questionnaires was distributed to the respondents of small enterprises entrepreneurs in West Sumatera Province, Indonesia using the method of the purposive random sampling. The hypotheses were tested using survey data from small enterprises that had obtained bank loan. For data analysis, the Structural Equation Model (SEM) was used. Based on the study results, the entrepreneurial characteristics positively affect the business performance, which then positively affects the chances of access to the credit. Ultimately, it was proven that entrepreneurial characteristics affect the access to credit. The research finding highlights the important of the role of business performance in mediating the effect of entrepreneurial characteristics on credit access. Therefore, it is recommended that there should be a strategy to strengthen the entrepreneurial characteristics to improve the small business performance. In addition, the entrepreneurs are recommended to develop and maintain a strong entrepreneurial characteristics.

Suggested Citation

  • Teti Chandrayanti & Teti Chandrayanti & Sulaeman Rahman Nidar & Asep Mulyana & Mokhamad Anwar, 2020. "Impact of entrepreneurial characteristics on credit accessibility: case study of small businesses in West Sumatera – Indonesia," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(3), pages 1760-1777, March.
    • Handle: RePEc:ssi:jouesi:v:7:y:2020:i:3:p:1760-1777
    DOI: 10.9770/jesi.2020.7.3(21)
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    References listed on IDEAS

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    More about this item

    Keywords

    entrepreneurial characteristics; business performance; small business; credit access;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General

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